Q305
Demand for final consumption arises in
A.
Household sector only
B.
Government sector only
C.
Both household and government sector
AnswerD.
Neither household nor government sector
Answer: Option C
Solution
Answer: Option C
Solution:
Demand for final consumption arises in both household and government sector. In the basic two- sector circular flow of income model, the economy consists of two sectors: (1) households and (2) firms.